Sanlam Allianz Holdings (Kenya) Plc closed 2025 with a profit before tax of KSh 1.315 billion, a 7.65% decline from the prior year, as stronger underwriting performance was offset by a sharp deterioration in investment returns.
The results mark a year in which the group completed a rights issue, executed a corporate rebrand and restructured its balance sheet, building a foundation that analysts say positions it well for the period ahead, even as near-term earnings remain under pressure.
A Year of Transition and Rebrand
The group rebranded from Sanlam Kenya PLC to SanlamAllianz Holdings (Kenya) PLC during the year, reflecting the continental joint venture between Sanlam, Africa’s largest non-bank financial services company, and Allianz, the global insurance group. The name change brought with it a more integrated operating model, combining local market knowledge with Allianz’s technical capabilities across its 26-country African presence.
Group CEO Dr. Patrick Tumbo framed the year in those terms.
“2025 marked a year of transformation by executing a successful rights issue and launch of our comprehensive corporate rebrand,” he said. “Our 2025 results demonstrate strong execution of our strategic initiatives, underpinned by the resilience of our core business.”
Underwriting Improves, but Markets Take Back the Gains
The clearest positive in the results came from the insurance services line. The net insurance service result surged 46% to KSh 951.5 million, despite a 3.2% decline in insurance revenue to KSh 4.41 billion. A 9.1% reduction in expenses drove the improvement, signalling tighter cost control and better risk selection rather than volume growth.
Analysts at Ketu Capital read that as deliberate repositioning. “Management is prioritising quality of business over top-line growth, likely exiting under-priced segments and recalibrating pricing in a tougher claims environment,” they noted.
What underwriting delivered, however, investment markets largely erased. Investment returns fell 22.5%, producing a net financial loss of KSh 229 million compared to a gain in the prior year. Net finance expenses from insurance contracts climbed to KSh 3.88 billion, reflecting interest credited to policyholders as the group met its long-term contractual obligations. Mark-to-market pressures and lower realised gains weighed on returns even as the group increased its allocation to government securities by 10.5%.
Earnings per share fell 69.9%, reflecting the combined drag of weaker investment income and a larger share base following the rights issue.
Balance Sheet Strengthened Through Rights Issue and Deleveraging
The rights issue completed during the year drove shareholders’ funds up 161.6% to KSh 4.75 billion, from KSh 1.92 billion in 2024. The proceeds funded an aggressive deleveraging programme that cut total borrowings by 66% to KSh 1.42 billion from KSh 4.22 billion, reducing finance costs by 72% in the process.
The key financial metrics for FY2025
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Profit Before Tax | KSh 1.315 billion | KSh 1.423 billion | -7.65% |
| Profit After Tax | KSh 832 million | — | — |
| Insurance Revenue | KSh 4.41 billion | KSh 4.56 billion | -3.2% |
| Net Insurance Service Result | KSh 951.5 million | KSh 653 million | +46% |
| Net Finance Expenses | KSh 3.88 billion | — | — |
| Total Assets | KSh 39.37 billion | — | — |
| Shareholders’ Funds | KSh 4.75 billion | KSh 1.92 billion | +161.6% |
| Total Borrowings | KSh 1.42 billion | KSh 4.22 billion | -66% |
| Investment Returns | — | — | -22.5% |
| Earnings Per Share | — | — | -69.9% |
Total assets held at KSh 39.37 billion, reflecting a balance sheet that Ketu Capital described as constructive for the medium term. “This positions Sanlam Allianz for more stable underwriting-led growth going forward,” the analysts said, “albeit at the cost of near-term returns.”
SanlamAllianz: Rebuilding Trust and Driving Insurance Inclusion in Kenya
Digital Progress and Pension Commitments
On the operational side, Sanlam Allianz Life now processes most new business through digital channels, a shift Dr. Tumbo described as “a key competitive advantage.” The Akiba Plus embedded distribution platform continued to gain ground, opening opportunities in Deposit Administration Funds that offer a 5% minimum guaranteed return. The group declared a 14% net return on those funds for 2025, compared to 15% in 2024.
The group also maintained a pension payroll of KSh 160 million per month for its retirees, a commitment Dr. Tumbo highlighted as central to the group’s social purpose.
No Dividend as Capital Preservation Takes Priority
The board did not recommend a dividend for the year ended 31 December 2025. The decision reflects a strategy of preserving capital to consolidate the balance sheet gains achieved through the rights issue and to support the next phase of growth.
What Comes Next
Ketu Capital described 2025 as a transition year in which the core insurance operation was being repaired. “The strategic shift is clear: from growth at any cost to disciplined, capital-backed underwriting,” the analysts said. “Earnings will remain uneven until investment income stabilises.”
With a stronger capital base, reduced debt obligations and improving underwriting margins, Sanlam Allianz Kenya enters 2026 with more structural stability than it carried into 2025. The open question is whether investment conditions recover quickly enough to let the earnings catch up with the foundation now in place.
